The combined company will be one of the largest regional banks in the US
The merger between New York Community Bancorp (NYCB) and Flagstar Bancorp has been finalized, creating one of the largest regional banks in the country.
The banks on Thursday confirmed the close of the all-stock merger deal, which was first announced in April 2021 and amended this October. NYCB has acquired Flagstar – operating 395 branches across nine states and nationally through its Flagstar Mortgage division – for approximately $2.6 billion. As of September 30, NYCB would have had $88.4 billion of assets, $66.0 billion of loans, deposits of $58.3 billion, and total stockholders' equity of $9.3 billion.
Notably, the combined company will be one of the biggest regional banking franchises in the US based on total assets, with an expansive retail network and several national lines of business, including multi-family lending, residential mortgage origination and servicing, warehouse lending, and a commercial banking platform.
NYCB and Flagstar will continue operating their retail banking networks separately under their respective brands until the combined company launches under a single brand.
Commenting on the transaction, NYCB president and CEO Thomas Cangemi said: “The merger creates a company with significant scale and capabilities with a more diversified loan portfolio, an improved funding mix, and a much better interest-rate risk profile. Our employees will benefit from greater opportunities and resources that a bank with almost $90 billion in assets possesses. Customers will benefit by having access to a wider array of products and services driven by enhanced technology, and our communities will benefit, including from our $28 billion pledge agreement.”
In line with the merger, NYCB’s board of directors appointed six new directors, five of whom are former directors of Flagstar. The company also announced the formation of its executive leadership team:
- John Adams, senior executive vice president and director of indirect multi-family lending
- Reggie Davis, senior executive vice president and president of banking
- John Pinto, senior executive vice president and chief financial officer
- R. Patrick Quinn, senior executive vice president, general counsel, and corporate secretary
- Lee Smith, senior executive vice president and president of mortgage
- Meagan Belfinger, executive vice president and chief audit executive
- Karen Buck, executive vice president and special advisor to the CEO on the Conversion
- Jennifer Charters, executive vice president and chief information officer
- Beth Correa, executive vice president and director of corporate responsibility
- Salvatore DiMartino, executive vice president, chief of staff to the CEO, and director of investor relations
- David Hollis, executive vice president and chief human resources officer
- Andrew Kaplan, executive vice president and chief digital and banking as a service officer
- Ross Marrazzo, executive vice president and enterprise chief compliance officer
- Nicholas Munson, executive vice president and chief risk officer
- Julie Signorille-Browne, executive vice president and director of operations
“The team we have assembled reflects, what I believe to be one of the most effective and dynamic leadership teams within the regional bank industry,” Cangemi said.